FCC Eases Burden on ISPs to List Every Fee on Broadband Labels
The US Federal Communications Commission has simplified broadband label rules, reducing the requirement for internet service providers to itemize all fees.
The FCC has revised rules for broadband price labels, easing the burden on Internet Service Providers (ISPs) to separately list all fees. Previous regulations required labels to include every fee, such as infrastructure or service charges, which are actually part of the provider's total cost of doing business. ISPs often separate these from the base price for billing purposes.
Complaining about this requirement, industry lobby group USTelecom stated that providers must create and update hundreds of different labels to account for geographic variability and customer addresses. FCC Chairman Brendan Carr said the earlier labels were cluttered with unnecessary details, making them less effective as a quick shopping tool, although Congress intended them as such.
The new rules simplify the labels but still require essential information: monthly price, introductory rates, typical download and upload speeds, latency, data allowances, and contract terms. Labels will remain available in languages that providers use for marketing.
Additionally, the FCC now allows customer service representatives to discuss the label conversationally over the phone rather than reading it verbatim. Commissioner Anna Gomez noted that phone calls remain an important point of sale, especially for those without broadband access. The updated rules mandate that critical information be conveyed over the phone, including the monthly price inclusive of fees, introductory rate duration, typical speeds and latency, data cap, contract term, and early termination fees.
